THE HOLY Synod yesterday unanimously ordered a probe into allegations of embezzlement and mismanagement after being shown the findings of an internal audit on the state of the Church’s finances.
The audit scrutinised the finances of the Hellenic Mining Corporation, of which the Church is the major shareholder, and of the Archbishopric, which is owed over £20 million.
Following the seven-hour marathon meeting held behind closed doors, the Synod decided to suspend for three months two Church employees: accountant Chrysostomos Philippou and the Archbishop’s chauffeur Iosif Aristodemou. Both are family relations of the Archbishop. Together, they reportedly owe the Church more than £1.5 million.
Speaking to reporters after the meeting, Bishop Chrysostomos of Paphos said the amount due to the Archbishopric was as high as £23 million – owed by around 600 debtors.
He added the decision to suspend the two officials was “for the good of the Church”.
“We do not hate anyone,” he added, “we love them all, but more than anything we love the Church.”
During the summer, the media uncovered dozens of cases of land allegedly sold at well below its market value to relatives or associates of the elderly and ailing Archbishop, who has been unable to carry out his duties for some time.
There have been accusations that relatives took advantage of the Archbishop’s condition — he suffers from memory lapses — to lay claim to substantial Church real estate worth millions.
The Church is the biggest landowner in Cyprus.
One example was the case of a company that owes the Archbishopric £10 million for the purchase of 500 hectares in the Paphos district; the company had allegedly bought back the land after having sold it to the Church for £8.3 million.
It is thought that the Church currently has hundreds of debtors, owing it a total of £15 million.
Paphos Bishop Chrysostomos, who called for the audit, yesterday seemed confident that the Church would collect all the money due. He also downplayed concerns of a cover-up in case the Holy Synod was presented with very controversial material.
“People should not worry about a cover-up; I think all
Church leaders will agree on the need for an investigation,” he said.
Chrysostomos, the Archbishop’s namesake, has declared his interest to succeed the Primate, although the succession issue has been dragging on for months, with the Synod finally ruling there should be no elections for as long as the Archbishop was still alive. It has been suggested that the Bishop of Paphos recommended the financial audit as part of his “election campaign” for the top job.
Speculation that the succession race and the financial probe may be linked is lent credence by the fact the Archbishop’s relatives were among those most fiercely opposed to early elections to replace the Archbishop. It is thought Bishop Chrysostomos may be trying to discredit these quarters by making public their alleged misappropriation of Church property. In doing so, he would also appear to be clamping down on nepotism in Church appointments.
But the wheeling and dealing inside the Archbishopric was just part of the audit, which also examined the finances of companies which the Church owns or has a stake in. Reports coming out suggested most of these companies were operating at a loss.
The Church of Cyprus is the primary shareholder in the Hellenic Mining Company, one of the largest conglomerates on the island. The group includes the Hellenic Bank, the Vasilikos cement plant, local beverages giant KEO and IT company Hellenic Technical Enterprises.
Reportedly one of the quarries owned by the Hellenic Mining Company has accumulated losses of £16 million over the past five years.
The Church broadcasting station Logos is also said to be in financial trouble.
Directors representing the Church on the boards of companies could lose their jobs if a further inquiry were to establish mismanagement and irregularities; Bishop Chrysostomos has already asked for legal advice on whether the Synod has the authority to remove these people. Press reports suggested the Synod was kept in the dark about its financial interests, because its representatives did not feel they had to report back.
Over the past couple of years, the Church has been rocked by a series of scandals and disputes, largely attributed to an ongoing power struggle among the various factions.
